Online fintechs Prospa and Reckon bypass banks in new partnership
The partnership will allow Reckon customers to apply for small business loans through Prospa.
As banks are entering new partnerships with smaller fintech companies seemingly every week, today online SME lender Prospa has announced a partnership with accounting group Reckon. The new product, Reckon Loans, will be facilitated by Prospa and allow Reckon's customers to apply for loans of between $5,000 and $250,000.
Reckon Group COO Dan Rabie said the aim was to leverage data to make the credit process easier.
“Fintech disruption has changed the business lending game, with online entrants challenging the traditional providers of bank finance by introducing new cash-flow financing options for SMEs.”
“Data from accounting software used to evaluate cash-flow is seen as the best measure of business fundamentals, helping to determine the business’s ability to repay and manage risk during the life of a loan.”
Rabie went on to say that Reckon's partnership with Prospa was the logical choice to power its small business lending.
In the fintech world, partnerships pull the market forward, and in this case, it helped Reckon deliver a new product to its customers through a company that was doing it already.
Beau Bertoli, Prospa's joint CEO, explained how Prospa was ready to step in and provide finance to customers from its accounting partner.
“At Prospa, we work with high-quality partners that share our values, we put customers at the centre of everything we do,” he said.
“By powering Reckon Loans, we are helping small businesses access faster finance solutions so they can make timely decisions and seize opportunities with peace of mind.”
Prospa currently has a partnership in place with Big Four bank Westpac as well as listed mortgage aggregator AFG.